1)Not prepared, 2) Slightly Prepared, 3) Neutral, 4) Prepared, 5) Very Prepared
We have identified our successor(s), and all family members and key stakeholders are aligned on the future succession of the business.
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My advisors and I have developed a comprehensive written succession plan with clear action steps and an execution timeline.
We have a clearly defined timeline for leadership and ownership transition with a semi-retirement or full retirement date set.
We have clearly defined the future roles of family and non-family stakeholders (leadership, ownership, or no involvement) and have communicated it to them.
We have built an experienced team of professionals to advise me and my management team throughout the business succession process, which includes business, tax, legal, estate and financial advisors.
We have determined the value of my business based on adjusted EBITDA and benchmarked it against industry standards.
Our top three value drivers that generate the majority of profits have been identified and are actively managed to maximize enterprise value.
We have designed and implemented an executive compensation structure to retain and incentivize key employees based on their value to the company.
We have a formal employee evaluation process tied to company and individual performance, including defined formulas, benchmarking, and periodic reviews.
We have implemented a comprehensive asset protection strategy, including safeguards for intellectual property and other critical assets.
My advisors and I have developed a coordinated tax strategy to minimize income, capital gains, and estate/gift taxes across business and personal assets.
I have clearly defined my personal after-tax income needs and developed a plan to strategically transition income away from the business.
We have established strong financial controls and key performance indicators (KPIs) to monitor and sustain business performance.
My advisors and I have identified and mitigated key pre-transition risks, including corporate, employee, and liability exposures, with appropriate insurance coverage.
We maintain accurate and up-to-date financial records, corporate documents, and Standard Operating Procedures (SOPs) to support continuity and decision-making.
We have developed and implemented a written communication plan with across management and employees to improve efficiencies and processes
I have identified and have a plan to shift my roles and responsibilities to limit my daily involvement over the next few years
Our leadership development plan for next-generation management is structured, in writing with action items for the management team
We have a fully developed ownership transfer strategy utilizing, equity transfer, loans, trusts, buy-sell agreements, etc.
I have a personal financial roadmap that integrates with my business succession strategy to ensure alignment of personal and business goals.
* I understand I also should consult with a tax professional, such as a CPA, regarding my taxes and tax situations
